Aviation services provider AAR reported sales of $686 million in the second quarter fiscal year 2025, ending November 30, 2024, marking a 26% increase from the same period a year prior.
Cost of sales increased from $442 million in second quarter fiscal year 2024 to $557.5 million in the second quarter fiscal year 2025. Gross profit for the period totalled $128.6 million and the company recorded a net loss of $30.6 million, or a loss per share of 87 cents. The result swings from the previous year's net profit of $23.8 million, or earnings per share of 67 cents. AAR reported an adjusted EBITDA of $78 million, increasing 42% year-over-year.
The company's parts supply segment generated sales worth $273.7 million, up 20% from a year prior, and an operating income of $31.6 million. AAR chairman, president, and CEO John M. Holmes said this growth was led by “significant expansion” in its commercial new parts distribution activities and a “return to growth” for its used service materials as “high demand for engine and airframe components continued and asset availability improved".
AAR's repair and engineering segment reported sales of $228.8 million, increasing 57% year-over-year, and an operating income of $22.8 million. The growth was driven by its efficiency gains in its heavy maintenance hangars along with “meaningful contributions” from its product support acquisition. AAR had acquired the Triumph Group's product support business in March 2024.
The company's integrated solutions segment reported sales of $163.4 million and operating income of $6.5 million, while its expeditionary services generated $20.2 million in sales and an operating income of $2.2 million.
As of November 30, 2024, assets totalled $2.8 million, while total liabilities and equity totalled $2.8 million. The company generated a cash flow from operating activities of $22 million.